To maximize worldwide gains from trade, the country that should produce a good is the country that

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To maximize gains from trade, a country should produce the good for which it has the lowest opportunity cost. Opportunity cost is the cost of producing one good in terms of the alternative good that could have been produced instead. By producing the good it has the lowest opportunity cost for, a country can then trade with other countries for goods in which it has a higher opportunity cost, leading to a more efficient allocation of resources and maximizing worldwide gains from trade.

To Maximize Worldwide Gains from Trade, the Country That Should